Hello everyone, welcome to PWC Taxbyte podcast series.

My name is Peter and I'm very happy to welcome in my virtual recording studio, Helena

and Alexi.

Today we want to talk about CBAM.

We're going to talk about what is it? Why is it relevant for the audience here?

What can be the impact? But before we dive into the topic itself, allow me to introduce to you

Helena and Alexei. So first of all we have Helena Kaluy with us.

Helena is a custom specialist and she's focusing on sustainable supply chains.

So clearly a right person to have here regarding the topic.

Secondly, we have Alexei de Meier. Alexei is leading the tax and legal practice on sustainability.

So again, he's going to bring an interesting perspective to this.

C-BAM, maybe Alexei I want to kick off this podcast by raising the question.

Why is this topic actually relevant for our audience here in the podcast?

Good question, Peter.

Actually, it's not an easy one because the C-Bam, so the carbon border adjustment mechanism, it looks like a tax, it smells like a tax.

There are some reporting obligations like taxes, but according to the EU, this is not a tax.

So sometimes we feel a bit like Magrid situation.

So for the EU, this is a climate measure and we all know why the EU didn't say it's not a tax,

because at the EU we need unanimity if we want to have a change in fiscal policy.

But also who is administrating this CBM is also the DG taxud. So even though it's not officially a tax,

it looks like really a tax.

And of course, if something goes wrong on this topic,

...